Solution-Compute the amount of cash flow from operations

Compute the amount of cash flow from operations

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Reference no: EM13548851

Calculating and interpreting cash flow from operations. The following items appear in the financial statements of Bamberger Enterprises, a firm offering IT services for Sarbanes- Oxley compliance, for a year (amounts in thousands):

Sales	$ 14,600
Depreciation Expense	(210)
Income Taxes	(200)
Other Expenses	(13,900)
Net Income	$ 290

The changes in the current asset and current liability accounts were as follows:

Accounts Receivable	$780	Decrease
Inventories	80	Decrease
Prepayments	100	Decrease
Accounts Payable	90	Increase
Other Current Liabilities	240	Decrease

a. Compute the amount of cash flow from operations.

b. Comment on the major reasons why cash flow from operations exceeds net income.

Reference no: EM13548851

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Compute the amount of cash flow from operations

Reference no: EM13548851

Reference no: EM13548851

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